| Hedge |
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Making
an investment to reduce the risk of adverse price movements in an
asset. Normally, a hedge consists of a protecting position in a related
security.
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If
you owned a stock, then short selling an equal amount would be a "perfect
hedge". This is an awesome strategy to use if you are unsure
what the market will do(or if you think it will tank), you can reduce
your risk to nothing. |
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Dictionary
